By Van de Putte S.B. No. 1370
77R7528 JMG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain pawnbroker requirements.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 371.182, Finance Code, is amended to read
1-5 as follows:
1-6 Sec. 371.182. HOLD PERIOD. The commissioner may designate a
1-7 reasonable hold period, of not less than 20 days, during which a
1-8 pawnbroker may not sell or otherwise dispose of an item of goods
1-9 acquired and offered for sale or other disposition by the
1-10 pawnbroker.
1-11 SECTION 2. Subchapter E, Chapter 371, Finance Code, is
1-12 amended by adding Section 371.2041 to read as follows:
1-13 Sec. 371.2041. PROVIDING DATA TO LAW ENFORCEMENT OFFICIALS.
1-14 (a) In this section, "reportable data" means the information
1-15 required to be recorded by pawnbrokers for pawn transactions under
1-16 Sections 371.157(1), (2), (3), (4), and (9) and the information
1-17 required to be recorded by pawnbrokers for purchase transactions
1-18 under Section 317.177.
1-19 (b) This section applies only to a pawnbroker who, at the
1-20 time of receipt of notice from an appropriate law enforcement
1-21 official under Subsection (c), possesses computer hardware and
1-22 software necessary to comply with the requirements for providing
1-23 reportable data under this section and, for the most recent
1-24 preceding period of January 1 through June 30 or July 1 through
2-1 December 31, conducted at least 1,500 pawn transactions. A
2-2 pawnbroker who becomes eligible for application of this section
2-3 remains eligible regardless of the number of pawn transactions
2-4 conducted in subsequent periods.
2-5 (c) An appropriate law enforcement official in a county with
2-6 a population of 500,000 or more shall adopt a policy requiring each
2-7 eligible pawnbroker operating in the county or the municipality, as
2-8 appropriate, to provide reportable data to the official in
2-9 accordance with this section. The official shall take appropriate
2-10 action to facilitate the receipt of that data. An appropriate law
2-11 enforcement official in a county with a population of less than
2-12 500,000 may adopt a policy under this subsection.
2-13 (d) Not later than the 60th day after the date on which a
2-14 pawnbroker receives written notice from an appropriate law
2-15 enforcement official that the official has adopted a policy under
2-16 Subsection (c), the pawnbroker shall notify the official in writing
2-17 as to whether or not the pawnbroker possesses computer hardware and
2-18 software necessary to comply with the requirements of this section
2-19 for providing reportable data.
2-20 (e) If the pawnbroker possesses the necessary computer
2-21 hardware and software, the pawnbroker, before the end of the
2-22 six-month period after the date of the receipt of the notice from
2-23 the appropriate law enforcement official, shall make available all
2-24 reportable data to the official in a form prescribed by the
2-25 commissioner or as agreed by the appropriate law enforcement
2-26 official and the pawnbroker. The data shall be reported on
2-27 reusable media provided by the law enforcement official that is
3-1 mutually acceptable to the reporting pawnbroker and the law
3-2 enforcement official and furnished by the official. A pawnbroker
3-3 who does not possess the necessary computer hardware and software
3-4 shall comply with the requirements of this section before the
3-5 first anniversary of the date the pawnbroker obtains the necessary
3-6 computer hardware and software. A pawnbroker is not responsible
3-7 for any delay that results from the law enforcement official's
3-8 delay in facilitating the receipt of the data.
3-9 (f) The medium in which a pawnbroker provides data to the
3-10 appropriate law enforcement official must contain the reportable
3-11 data for all transactions during a particular business period of
3-12 not less than one business day and must be made available to be
3-13 picked up by the law enforcement official by the end of the second
3-14 business day after the business period to which the data relates.
3-15 (g) During a test period beginning on the date a pawnbroker
3-16 begins to provide reportable data under this section, the
3-17 pawnbroker shall also make available copies of each of the
3-18 underlying pawn or purchase transaction documents to enable the
3-19 appropriate law enforcement official to ensure the proper operation
3-20 of the system for providing the data. The length of the test
3-21 period shall be agreed on by the law enforcement official and the
3-22 pawnbroker and may not exceed 90 days.
3-23 (h) A law enforcement official, by written notice, may
3-24 require reporting pawnbrokers in the jurisdiction of the official
3-25 to provide reportable data to an alternative entity in lieu of
3-26 providing reportable data to the law enforcement official.
3-27 (i) A pawnbroker is responsible for training the
4-1 pawnbroker's employees in correct data reporting and shall make
4-2 efforts to provide complete and accurate data to the appropriate
4-3 law enforcement official. If a pawnbroker or the appropriate law
4-4 enforcement official discovers an error in the provision of
4-5 reportable data by that pawnbroker, the pawnbroker shall be allowed
4-6 a period of at least 30 days after the date of receipt of notice
4-7 from the law enforcement official to correct the error. If a
4-8 pawnbroker experiences a computer malfunction, the pawnbroker shall
4-9 be allowed a period of at least 30 days after the date the
4-10 malfunction begins in which to correct the malfunction. A
4-11 pawnbroker who makes a bona fide effort to make the appropriate
4-12 system modifications during the periods prescribed by this
4-13 subsection is not in violation of this section during those
4-14 periods. During those periods the pawnbroker and the law
4-15 enforcement official shall arrange a mutually acceptable
4-16 alternative method by which the pawnbroker provides the reportable
4-17 data.
4-18 (j) All reportable data transmitted to an appropriate law
4-19 enforcement official under this section is confidential and may be
4-20 used by that official only for official law enforcement purposes
4-21 relative to the investigation or enforcement of this chapter.
4-22 SECTION 3. (a) This Act takes effect September 1, 2001.
4-23 (b) Section 371.182, Finance Code, as amended by this Act,
4-24 applies only to a hold period designated on or after the effective
4-25 date of this Act. A hold period designated before the effective
4-26 date of this Act is governed by the law in effect before the
4-27 effective date of this Act, and that law is continued in effect for
5-1 that purpose.